Vikings Revenge: Iceland takes back their money.... or not?

I've had several people ask for my comments on this article from earlier this week.  I went over it quite a bit on facebook in several groups.... but thought I'd publish it all here, since I've just mentioned it in my latest Transpicuous News Update (HERE)

This all keeps coming back to the Icelandic Revolution that wasn't.  Real, that is.  Articles like this one below, have been coming out for the past few months, mentioning Switzerland, Sweden etc.... and their Central Banks.  On the surface, they look very nicey nicey and oh isn't that wonderful how they are going to "empower" their Central Bank to make money.....

.... but reading what's actually being said in these articles gives a VERY different outlook.   So I've highlighted various pieces of note in this article about Iceland's Central bank to Create it's own money, and I've added my own comments in Blue.

This is just a repeat of what Switzerland talked about doing in December 2015.  They are trying to skew the picture and to confuse the public about who is actually in charge of creating "Money".

d

Vikings Revenge: Iceland Takes Back Power To Create Its Own Money

APRIL 4, 2015 BY 21WIRE 7 COMMENTS

21st Century Wire says…

The Vikings revenge. Iceland is taking the money back from the clutches of the private fractional reserve lending cartel.

It’s happened before in history, and with great success, but it has also prompted a violent backlash from the elites…

Back in 1914, the Bradbury Pound was introduced by the UK government as an ’emergency measure’ to bolster a failing economy. It was a huge success. The banking elite were unhappy, however and panicked – before managing to wrestle control of the money supply afterwards.

President John F. Kennedy also introduced a similar ‘Greenback’ in 1961, and again, the banking elite were very unhappy about being pushed out, and losing control of the issuance ofmoney as debt. JFK did not survive past 1963.   (D:  This has nothing to do with what Iceland is proposing for it's central bank)

Then there was Muammar al-Gaddafi in Libya who, in 2009 announced a new gold-backed dinar, issued by Libya’s state-owned public central bank, and with further plans – negotiating with the other African nations for the creation of an all-African currency to compete with the Euro and the Dollar. Gaddafi did not survive past 2011. (D:  Again, this has nothing to do with what Iceland is proposing for it's central bank)

Raúl Ilargi Meijer
Automatic Earth

Who knew that the revolution would start with those radical Icelanders?

One Frosti Sigurjonsson, a lawmaker from the ruling Progress Party, issued a report today that suggests taking the power to create money away from commercial banks, and hand it to the central bank and, ultimately, Parliament.

D: "take money creation from commercial back and give to Central bank"
- the central bank IS a commercial bank, privately owned, and not under the control of Parliament/Government

Can’t see commercial banks in the western world be too happy with this. They must be contemplating wiping the island nation off the map. If accepted in the Iceland parliament , the plan would change the game in a very radical way. (D: No.No, it wouldn't) It would be successful too, because there is no bigger scourge on our economies than commercial banks creating money and then securitizing and selling off the loans they just created the money (credit) with. 

D:  complete and utter bullshit and misdirection. The entire meme here about how the central bank is not responsible and that it's the commercial banks faults, is completely bunk. the commercial banks get their money creation THROUGH the central bank(s).

Everyone, with the possible exception of Paul Krugman, understands why this is a very sound idea. Agence France Presse reports:

Iceland’s government is considering a revolutionary monetary proposal – removing the power of commercial banks to create money and handing it to the central bank. (D: Complete turnaround disinfo) The proposal, which would be a turnaround in the history of modern finance, was part of a report written by a lawmaker from the ruling centrist Progress Party, Frosti Sigurjonsson, entitled “A better monetary system for Iceland”.

“The findings will be an important contribution to the upcoming discussion, here and elsewhere, on money creation and monetary policy,” Prime Minister Sigmundur David Gunnlaugsson (D: the guy who's just been thrown out of government and will never again be able to show his face in Iceland) said. The report, commissioned by the premier, is aimed at putting an end to a monetary system in place through a slew of financial crises, including the latest one in 2008.

According to a study by four central bankers, the country has had “over 20 instances of financial crises of different types” since 1875, with “six serious multiple financial crisis episodes occurring every 15 years on average”. Mr Sigurjonsson said the problem each time arose from ballooning credit during a strong economic cycle.

He argued the central bank was unable to contain the credit boom, allowing inflation to rise and sparking exaggerated risk-taking and speculation, the threat of bank collapse and costly state interventions. In Iceland, as in other modern market economies, the central bank controls the creation of banknotes and coins but not the creation of all money, which occurs as soon as a commercial bank offers a line of credit. The central bank can only try to influence the money supply with its monetary policy tools.

D: the entire meme here about how the central bank is not responsible and that it's the commercial banks faults, is completely bunk. the commercial banks get their money creation THROUGH the central bank(s).

Under the so-called Sovereign Money proposal, the country’s central bank would become the only creator of money. “Crucially, the power to create money is kept separate from the power to decide how that new money is used,” Mr Sigurjonsson wrote in the proposal. “As with the state budget, the parliament will debate the government’s proposal for allocation of new money,” he wrote.

D: the entire meme here about how the central bank is not responsible and that it's the commercial banks faults, is completely bunk. the commercial banks get their money creation THROUGH the central bank(s). This is just the Central Bank owners consolidating power and removing any angle of "competition" and insuring their monopoly

Point 4: This study was written by private bankers with the Central Bank, to solidify their wish to cement their monopoly.

Banks would continue to manage accounts and payments, and would serve as intermediaries between savers and lenders. Mr Sigurjonsson, a businessman and economist, was one of the masterminds behind Iceland’s household debt relief programme launched in May 2014  (D: this "Debt Relief" program Never happened. )  and aimed at helping the many Icelanders whose finances were strangled by inflation-indexed mortgages signed before the 2008 financial crisis.

http://21stcenturywire.com/2015/04/04/vikings-revenge-iceland-takes-back-power-to-create-its-own-money/